New Jersey S 3410: Establishes "Entry-Level Home Production Incentive Act of 2026"; provides project gap financing for low- to middle-income housing development; appropriates $300 million.

Bill Text

S3410 

SENATE, No. 3410 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

INTRODUCED FEBRUARY 9, 2026

Sponsored by:

Senator� TROY SINGLETON

District 7 (Burlington)

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Establishes �Entry-Level Home Production Incentive 
Act of 2026�; provides project gap financing for low- to middle-income housing 
development; appropriates $300 million. 

CURRENT VERSION OF TEXT 

���� As introduced.

�� 

An Act providing project gap 
financing for low- to middle-income housing development, supplementing chapter 
14K of Title 55 of the Revised Statutes, and making an appropriation.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.� P.L.��� , c.��� (C.������� 
) (pending before the Legislature as this bill) shall be known and may be cited 
as the �Entry-Level Home Production Incentive Act of 
2026.� 

���� 2.� The Legislature finds and 
declares that:

���� a.� A combination of factors, 
including rising home prices, persistently elevated mortgage rates, and a 
limited housing inventory, have severely eroded the ability of many people, 
particularly middle-income young adults, to afford to purchase their first 
home;

���� b.� A limited availability of 
sufficient financing options for developers of low-, moderate-, and 
middle-income housing has restricted the ability of many development projects 
for those of modest incomes;

���� c.� The need to address the 
financing shortfalls experienced by many developers is central to the objective 
of increasing the supply of housing; and 

���� d.� It is necessary and in the 
public interest for the Legislature to establish a dedicated fund to bridge 
certain shortfalls in development financing, thereby assisting in the 
development of low- to middle-income housing.

���� 3.� As used in P.L.��� , c.��� 
(C.������� ) (pending before the Legislature as this bill):

���� �Agency� means the New Jersey 
Housing and Mortgage Finance Agency established pursuant to P.L.1983, c.530 
(C.55:14K-1 et seq.).� 

���� �Area median income� means the 
median gross household income for households of the same size within the 
housing region in which the housing is located, as determined pursuant to the 
rules and regulations adopted by the agency.� 

���� �Authority� means the New 
Jersey Economic Development Authority established pursuant to P.L.1974, c.80 
(C.34:1B-1 et seq.).� 

���� �Cost of development� means 
the consideration given, valued in money, whether given in money or otherwise, 
for the materials and services which constitute the development and includes 
all costs associated with the structural components within a property developed 
pursuant to P.L.��� , c.��� (C.������� ) (pending before the Legislature as 
this bill), and any soft costs associated with a development project if 
permitted by rules and regulations adopted by the agency or authority, as 
applicable.

���� �Fund� means the �Entry‑Level 
Home Development Fund,� established within the agency pursuant to subsection b. 
of section 4 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as 
this bill).� 

���� �Government-restricted 
municipality� means a municipality in this State with a municipal 
revitalization index distress score of at least 75, that met the criteria for 
designation as an urban aid municipality in the 2019 State fiscal year, and 
that, on the effective date of P.L.2020, c.156 (C.34:1B-269 et al.), is subject 
to financial restrictions imposed pursuant to the �Municipal Stabilization and 
Recovery Act,� P.L.2016, c.4 (C.52:27BBBB-1 et seq.), or is restricted in its 
ability to levy property taxes on property in that municipality as a result of 
the State of New Jersey owning or controlling property representing at least 25 
percent of the total land area of the municipality or as a result of the 
federal government of the United States owning or controlling at least 50 acres 
of the total land area of the municipality, which is dedicated as a national 
natural landmark.

���� �Industrialized or modular 
building� means any building of closed construction, including, but not limited 
to, modular housing that is factory-built, single-family, and multi-family 
housing, including closed-wall, panelized housing, as well as other modular, 
nonresidential buildings.� �Industrialized or modular building� shall not 
include any structure subject to the requirements of the National Manufactured 
Home Construction and Safety Standards Act of 1974 (42. U.S.C. s.5401 et seq.).

���� �Low- to middle-income housing� 
means housing affordable according to federal Department of Housing and Urban 
Development or other recognized standards for home ownership and rental costs, 
and reserved for occupancy pursuant to the rules and regulations adopted by the 
agency, by households with a gross household income not exceeding 120 percent, 
of the area median income, unless a different percentage is specified